Graduate School

NOTRE DAME OF MARBEL UNIVERSITY

Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

CHAPTER I

INTRODUCTION

The bakery industry is one of the several manufacturing industries which cater to

a communitys food needs. It is an industry which has the promise of expansion and

even franchising once a bakery has established a reputation for itself through customer

satisfaction. Bakeries are assured of repeat purchases from their customers since their

products have already become part of the average Filipinos diet. Bakery goods are

often substituted for breakfast because of their ease and speed of preparation. Heating

bread in the microwave or toaster and making a cup of coffee take less time and effort

compared to cooking rice and viand. The same is true when it comes to snacks- a

sandwich made with butter, jam or peanut butter takes less time to make compared to

cooking instant noodles.

Bakeries have passed through several changes from their appearance to the

present. These changes were in terms of physical structure, production systems, kind of

products, service that they provide, and many others. Some of these changes result

from a natural response of bakeries when they face demands resulting from

transformations occurring in the market. Souki (2003) points out that todays world

changes extend to the political, economic, cultural, social and technological spheres,

resulting in new market trends, as well as affecting food consumers and their

consumption pattern.
 Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Our history as a baking country is comprised of influences from many different

nations. The first evidence of baking occurred when the Spanish missionaries arrived in

the country. They brought and planted wheat in some provinces in the country. They

used this in making bread for the Holy Communion or what we call as Eucharistic

Bread. These missionaries were the ones who introduced baking to Filipinos and was

later copied and practiced by the locals (Dagoon et al. 1997).

Although baking bread has not been a native concept and was brought over by

Europeans and our other neighbors, throughout the years, Filipinos have come to love

eating bread. From there, it became part of our Filipino culture. Bread in its many forms

make up a portion of our diet and are eaten at mealtimes-as part of Filipino breakfast,

as a merienda or afternoon snack, and as an item for celebrations (special cakes, etc).

Philippine breads and pastries are vital in every Filipinos life. It can be observed

that we can find a local bakeshop in every neighborhood here in the country. These

establishments sold biscuits, crackers, pies, pastries, cakes, and different kinds of

breads including the hot pandesal.

In contrast to many other Asian economies, bakery products have a well-

established presence in the Philippine diet. Next to rice, bread is a staple item in the

Philippine diet and sales of cakes and pastries have been expanding over the last

decade.
 Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

The baking industry is a significant part of the Philippines' economy, making up

20.3 percent of manufacturing industries in 2010 according to a government census.

Food manufacturing in general is still the Philippines' most dominant industry and

accounts for over 40 percent of the country's total manufacturing output.

Bakeries provide necessities to the population in terms of bread and cake

products. Almost every household relies on the consumption of staple products such as

bread, and so the baking industry is able to thrive with this large, reliable demand.

Due to the increased demand for bakery products from the population in the

Philippines, putting up a bakery or a bakeshop is a good business venture in the

country. It would cater the needs of every Filipino family that enjoys bread and pastries

as a common daily food item. Thus, this research study aims to determine the

preferences for Bread and Pastry Products among the residents of General Santos City.

Therefore, considering the state of understanding of bakery consumers, the

present work aims to understand about their behavior, specifically the following:

To identify the reasons why consumers are led to attend bakeries;

To determine the relevant attributes of consumers during the purchase decision

process;

To ascertain how is the consumers image with regard to bakeries and baked

products, including those produced by them as well as those industrialized in

other companies;
 Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

To verify preferences of consumer and their willingness to pay more for given

bakery goods in General Santos City

Statement of the Problem

This research aimed to determine the preferences of the residents of General

Santos City for Bread and Pastry products. Specifically, this study desired to answer the

following questions:

1. What is the ideal location for a bakery in your opinion, and why?
2. Which reasons lead you to attend to bakeries?
3. What types of baked products are you used buy?
4. What leads you to decide about the bakery from which you have to buy

baked products?
5. Who gives you information about baked products you decide to buy (e.g.

spouse, relative, friend, colleague...)?

6. Which products must be offered in a bakery to attract much more

customers?
7. Are there differences between baked products and those industrialized in

other companies? Why do you think so?

8. What do you think about baked products? Should they be less expensive,

equal price, or more expensive than those processed by other companies?

Why?
 Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Scope and Limitations

The scope of the study is limited to the respondents that are residents of General

Santos City. It is focused to determine the residents preferences for bread and pastry

products and the different factors that influence them to buy and consume these

products.

Questionnaires will be utilized in the conduct of this study which covers the

respondents profile, the factors that influence them to buy bakery products, their

frequency of purchase and their preferred bread and pastry products.

Significance of the Study

Proprietors. This research study may serve as a guide for the different bakery

owners or future proprietors to cater the needs of these students and their preferred

baked products.

Marketers. The findings of the study may help them to be aware of the purchase

power of the residents in General Santos City.

 Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

School Administrators. This study will serve as their basis for bake shop venture

in their respective schools.

Students. The study will inform the students that there is a great demand for

this industry for people who have skills and background regarding Bread and Pastry

production. This will provide them a future career path that they may want to take.

Researchers. The findings of the study may serve as a reference and guide for

future researchers.